I rise in this Honourable House today to acknowledge yet another important development in our offshore oil industry.

There is a saying in the oil patch that "big fields get bigger." That has certainly proven to be the case in the Newfoundland and Labrador offshore.

On November 23, Husky Energy announced that it discovered additional oil resources in the North Amethyst field, a White Rose extension area.

The current estimate of the newly-discovered resource ranges from 30 to 85 million barrels of light crude oil, with the best estimate at this point being 60 million barrels.

The province, through Nalcor Energy, obtained a five per cent equity interest when we negotiated the agreement for the White Rose extension. The discovery of this additional oil points to the foresight of this government in ensuring we are equity partners in the development of our resources.

As a result of the discovery of this additional oil, the province will benefit through Nalcor by such a large amount that it is the same as recouping the purchase price for our equity in the White Rose Extension project and our equity in the Hibernia South extension field.

And depending on recovery rates and price of oil during production, this one discovery will cover all, or substantially all, the purchase price of our equity share in the Hebron development as well.

This is outstanding news for the people of this province and it certainly proves our critics wrong. Our decision to take equity in these resource projects is already paying tremendous dividends. Our government is taking greater ownership in the development of our resources in the best interest of the people of the province, and for the greatest benefit of the people of the province.

This announcement demonstrates precisely why taking an equity stake in our resources is such an important and worthwhile public policy.

And in negotiating that equity stake not only did the province buy into the existing reservoirs, we also acquired a piece of any additional discoveries in the whole formation above and below the existing reservoirs. Clearly the information I am presenting here today demonstrates that this was a very wise decision.

In addition, under the terms of the agreement reached with the White Rose partners in 2007, the province will obtain enhanced royalty of 36.5 per cent on all the oil in this new licence area.

Husky�s announcement demonstrates the tremendous resource in the Newfoundland and Labrador offshore area and, in particular, the ability to discover multiple pools in a given area. It is yet another positive step in our evolution as an oil-producing jurisdiction and the potential before us.